EUR/JPY Slips below Level 164.55 but Continues Its Bullish Ascent

EUR/JPY Significant Levels

Resistance Levels: 164.00, 166.00, and 168.00
Support Levels: 158.00, 156.00 and 154.00

EUR/JPY Price Long-term Trend: Bullish

The EUR/JPY currency pair has recovered above the moving average lines as it continues its bullish ascent. Buyers are struggling to keep the price above the moving average lines. The Yen is expected to rise once it breaks above the moving average lines. Meanwhile, on the September 27 uptrend, a retraced candle body tested the 50% Fibonacci retracement level.

The retracement indicates that EUR/JPY will rise to level 2.0 Fibonacci extension or level 171.46. However, the pair is trading at level 164.53 at the time of writing.

Daily Chart Indicators Reading:

The Yen has been trapped between the moving average lines after its decline on November 8. It is below the 21-day SMA but above the 50-day SMA support. The currency pair will commence its bullish ascent once it breaks above the 21-day SMA resistance. Presently, the price movement has been dominated by small-body indecisive candlesticks called Doji.

EUR/JPY Medium-term Trend: Ranging

On the 4-hour chart, the Yen is declining below the moving average lines but it is correcting upward as it breaks above the 21-day SMA. The upward move will commence when it breaks above the 50-day SMA resistance. On November 13, the price movement has been stalled by the 21-day SMA resistance and the 50-day SMA support. This is represented by the long candlestick wick and tail.

4-hour Chart Indicators Reading

The currency pair has commenced a range-bound move between the 21-day SMA and the 50-day SMA. The Yen will trend but will be trapped for a few more days. On November 13, there was a long candlestick tail pointing toward the 21-day SMA support. It indicates strong buying pressure at the current support.

General Outlook for EUR/JPY

The EUR/JPY pair is in a range-bound move but continues its bullish ascent. The Yen has the chance of a possible rise because the direction of the market is bullish. However, the price movement has been slowed down by the Doji candlesticks. The forex signal is bullish as the Yen continues its bullish ascent.

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